Hello, Please update me about collection / payment of Service tax @ 14% on Software Trading. Some of our supplier charged 14% Service Tax on Trading of Software License like Microsoft / Tally / Antivirus. According to our knowledge, We are only Trader / Merchant, We purchase software and sell to Customer. We are not involved in any type of Modification / Changes in that "Packed" License Key / License SOftware; But we got Service Tax in our Purchase Bill. . How we convince our supplier for Not to charge any type of Service Tax in our purchase bill. . Please help with proper notification / circular.
1 Replies
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 18 July 2015
The market leaders have choosen the safe way out not to take a risk and are charging both.
Theoritically SC has clearly stated that software is a sale - TCS decision. Therefore for self developed s/w this defence maybe possible.
For the right to use the s/w the matter is unclear and therefore all playing safe.
Only in GST we expect this matter would resolve.
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